Workers’ faced paying extra £30bn tax as inflation soars and UK heads for the highest levies as proportion of GDP for 70 years
- Workers start to pay income tax at £12,570 and move to higher rate at £50,271
- These bands would have risen by inflation but will now remain frozen until 2025
- Experts expect wages to go up faster meaning more people in higher tax bands
Workers will pay an extra £30billion in tax by 2024 because of the freeze on income tax thresholds.
The ‘stealth’ tax hike was meant to raise £8billion when Rishi Sunak announced it last March.
But soaring inflation means the decision to fix the level when workers start paying the basic 20p rate of tax, and the higher 40p rate, will raise tens of billions of pounds of extra cash.